Unit II Brand Management - Brand Positioning
Unit II Brand Management - Brand Positioning
Unit II Brand Management - Brand Positioning
B R A N D S T R AT E G I E S
D r. P. S .Ve n k a t e s w a r a n ,
P r o f e s s o r, P S N A C E T
Strategic Brand Management Process
STEPS KEY CONCEPTS
1. Identify and Establish Mental maps
Brand Positioning and Values Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
2. Plan and Implement brand marketing Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations
3. Measure and Interpret Brand Performance Brand Value Chain
Brand audits
Brand tracking
Brand equity management system
4. Grow and Sustain Brand Equity Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
1.Brand Positioning
1. How can a firm develop and
establish an effective positioning in
the market?
2. How do marketers identify and
analyze competition?
3. How are brands successfully
differentiated?
Marketing Strategy
Segmentation Targeting Positioning
S T P
Positioning
The act of designing a company’s offering and
image to occupy a distinctive place in the minds of
the target market.
A good brand positioning helps guide marketing
strategy by clarifying the brand’s essence, identifying
the goals it helps the consumer achieve, and showing
how it does so in a unique way.
Brand Positioning
Quality
Price
D
E
G
F C
B
Value Proposition
What the
What the brand could
brand is be
A customer-focused value
proposition gives customers a
persuasive reason to buy your
product
Brand Positioning Positioning requires that
marketers define and
communicate similarities and
differences between their brand
Frame of Reference and its competitors:
1.Determine a frame of
reference by identifying the
target market and relevant
Points of parity / difference competition
2.Identify the optimal points of
parity and points of difference
brand associations given that
Brand mantra frame of reference
3.Create a brand mantra to
summarize the positioning
and essence of the brand
Competitive Frame of Reference
Identifying Competitors
Analyzing Competitors
Points of Parity / Difference
Points of Parity
POP
Points of Difference
POD
Choosing POPs and PODs
Brand Benefits
Brand Attributes
Reasons Proof
to believe points
Brand Mantras
Nike – “authentic athletic performance”
Points of difference
Points of parity
Differentiation Strategies
Competitive Advantage
Sustainable Leverageable
Customer Advantage
Means of Differentiation
Employees
Channels
Image
Services
Emotional Branding
Lovemarks
• Mystery
• Sensuality
• Intimacy
Emotional
Rational
Emotional Branding
Share of Market
Share of Mind
Share of Heart
Positioning in the market place
What is Positioning?
- It is the act of designing the company’s offering
and image to occupy a distinctive place in the
target market’s mind.
- Positioning is not what you do to the product
- Positioning is what you do to the mind of the
prospect
- Customer does the Positioning
- A product may have many distinctions. Which are
most important to the customers?
Positioning and Differentiation
• Positioning statements:
– To (target group and need) our (brand) is (concept) that
(point-of-difference)
• Example: To young, active soft-drink
consumers who have little time for sleep,
Mountain Dew is the soft drink that gives
you more energy than any other brand
because it has the highest level of caffeine.
Positioning in the market place
Positioning
- How do you differentiate your product from
competitors
- Differentiation, which is
Important
Distinctive
Superior
Not easily copied or Unique.
Affordable
Profitable
Developing and Communicating a
Positioning Strategy
• Positioning: How many ideas to promote?
• Unique selling proposition vs Unique value
proposition
Milkmaid
Started as Tea Whitener
Did not click
As a topping on pudding
Did not click
Finally clicked as base for dessert
Positioning in the market place
4. Doubtful Positioning
Find it to difficult believe in what company claims
Maruti 1000
- Launches in ’89
- Positioned as ‘ultimate in luxury’
- Only luxury car
- Launch of Esteem in ’94
- More luxurious than Maruti 1000
- Is it now ‘Ultimate in luxury
- Sales dipped
- Customer confused
- Repositioned as ‘Affordable luxury’
Positioning in the market place
Right Positioning is Critical
– Make or break the organization
McDonald’s
– Positioned as a family restaurant (QSCV)
Honda
– Economy and reliability
BMW
– Ultimate driving machine
Volvo
– Safety and Durability.
Positioning in the market place
4. USER POSITIONING
– Positioning the product as best for some user
group.
5. COMPETITOR POSITIONING
– Product claims to have better performance than
competitors
Brooke Bond Taj Mahal Tea
Endorsed by Zakir Hussain
– “If you find a better tea than Taj Mahal, then Zakir
Hussain will stop playing Tabla.
– Directly or indirectly refer competitors.
Positioning in the market place
6. PRODUCT CATEGORY POSITIONING
– Positioning as a leader in certain category.
Hero Honda
• Four Stroke, fuel efficiency
• Claimed as the leader in fuel efficiency
• Fill it, shut it, forget it
Livon
• After hair wash oil
• Smooth and silky hair
Positioning in the market place
Bajaj Scooters
– Lowest prices
– You just cannot beat a Bajaj
– Repositioned as ‘Hamara Bajaj’